SCO - FCO are bones for Brokers. After 3 years of international trade, I have NEVER closed a SPOT or Contract offered by SCO / FCO or Fixed Price List. Commodity trade by definition ......: is a floating market. With the exception of high value guarantee instruments used to financially back annual production thereby providing price fix assurances, the price is so volatile that anyone offering a fixed price is clearly fishing. I have posted several offers in LinkedIn and each time I am getting numerous responses for SCO/FCO. A true trade is simple. The product with spec is offered, a PO is issued (ICPO is another Broker term), a ProForma or simple contract is issued and signed and an LC copy on bank letterhead is submitted to the Seller for the Bank officers to negotiate terms and proof. Folks, THIS is commodity trading. All the docs back and forth and pre-advise this and that is for the inexperienced to spin their heels. PLEASE take the consultation here to heart. A few numbers to KNOW... ***These are all methods of transmission, they NOT in and of themselves instruments, they are ONLY transmissions of instruments.*** MT103/23 hasn’t been used since Oct 31, 2009 by a Prime Bank MT103 is NOT a POF, it is a CASH PAYMENT BY SWIFT!!! MT720 is NOT a transferrable instrument, it is a TRANSFERRED DLC! MT705/706 are DLC Pre-Advice MT760 is NOT a Pre-Advice, it is an ACTIVE and DRAWABLE GUARANTEE - IT IS EXTREMELY RISKY and requires ONLY a Beneficiarys statement to draw against
Posted on: Thu, 02 Oct 2014 18:34:54 +0000
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